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Why Everybody Should Trade Forex

I’m taking time off forex trading as I notice I have been getting a few consecutive losses in my trades. Time to learn and read some more and reflect why am I so dumb. I came across a great post by someone who is a professional forex trader. The original post is here. I just want to post it here for future reference and inspiration.

There are:1. no rent of offices (that is, NO dealing with Realtors, Lawyers, and government departments…man, what a pain in the ass). Also no office fit-out costs

2. no staff, (man, unless you have had large numbers of staff depending on YOU for their paypacket each week, you cannot know what a huge pain in the ass it is. They ALL want you to solve their problems)

3. No inventory or stock to buy. No shrinkage (theft of stock) and no “slow moving” items. No massive amount of funds tied up in inventory

4. You can “borrow” as much as you want (by increasing your leverage), WHENEVER you want. (Try running a big business and going to the bank for a short term loan for $10 mill…it will take a month minimum). I am trading $10-12 mill all the time and I get it instantly through the brokers by the use of leverage.

5. If the business becomes a hassle for whatever reason, you can shut it down (that is, close all positions) instantly…and re-open (initiate new positions) whenever YOU want to re-open your “business.”

6. You can “scale” your business to whatever size YOU want simply by increasing/decreasing your positions.

8. You can trade from anywhere in the world. My wife and I travel most of the year. (take your laptop or PDA or whatever else they will come up with and trade while sipping a nice drink as close by as your local cafe or as far as some open air cafe in some remote little town in beautiful Italy while you watch a bocce match at the park.)

I could keep telling you more of the benefits of this business, but suffice to say…this is the best “business” in the world. I run a multi-multimillion dollar business from my laptop.

And did I mention that it was exciting and fun????

But of course, not everybody can because of certain elements like willingness to learn and take risk. Only few people becomes successful and they control a market of $4 trillion dollar value.

just want to know which online broker you are using while trading in the Philippines? Which online broker can you suggest? I’m planning to do forex soon, i’m currently playing a demo account and doing some more reading about forex.

just want to have an idea on which online broker is hassle free or less if i were to trade in Philippines.

thanks.

Jeff

I have different brokers. But for starters, I really like eToro (sponsored ad on the right) because of their platform is so easy to use.

nicolo encarnacion

Good morning. Me and my kuyas would like to learn how to do forex. Is there like a seminar for this? Where will i know the scheds? Thank you! Hope you can help me.

richard

want to try forex trading too! may i ask for a site where i can start practice trading? thanks a lot!

http://pinoyFxTrader.blogspot.com pilTrader

I would suggest to start trading LIVE while still in practice but it must be on an amount where u can afford to loose. In my case, I started with $10 – instead of Trading DEMO. With this scheme, not just the system is practiced but as well as the emotional aspect of trading (the most important aspect). Put it this way, even if we have the top most trading strategy on earth but lacks the must emotional aspect/ discipline of trading, we will definitely and surely fail. Surely there are many components of a successful trader – Consistency, discipline, entry/exit strategy, position sizing, risk management, etc… but for my experience, Ive been trading for almost 3 years (though not significantly profitable) because I used to jump up from one strategy to another – looking for the best one. Thanks that I can claim I have been consistently executing proper RISK management and the result, I never wiped out from the market as what usually happened to a newbie trader.

My initial $10.00 account was actively traded from scalping strategy to price action to trend following/Long term which recently I am sticking into yet it survived in the market for two years practice. Recently, I increased the funds a little more but still, it is an amount which I can afford to loose. Yet, I still consider myself a newbie and still in practice thats why I trade part-time.

So, for those of you guys who want to be a trader, I suggest you have to master first RISK MANAGEMENT because “best trading system” without a fool-proof risk management cannot guarantee to keep your account: Even a 90:10 trading system’s win/loss ratio without proper risk management will wipe your $10,000 account within hours or even in minutes than in a trading system with 35:65 win/loss ratio with proper management. Honestly, my stat is around 36:64 win/loss ratio but my account’s equity is on the positive. While there are traders which he have 80:20 win/loss ratio – their account grow up to say 400% in just few weeks but in few days later incurred draw-downs and pull down their account balance below their initial deposit or worse, it became depleted.

I hope these illustration will help you in your quest to be an Fx Trader.

Good luck.

ForexPhil

Very good advice PilTrader.

http://pinoyFxTrader.blogspot.com pilTrader

THanks for the compliment Sir. More power!

Cap

How much is your return per month in terms of percentage? average, lowest and highest. =)

http://twitter.com/rivac7 riv

try fxstreet.com there are lots of resources there. or you may want to check out this one humanandprice.blogspot.com

Blue08chique

hi there i want to learn forex trading too..is solidforexltd good?

humanandprice.blogspot.com

I am not really familiar with solidforexltd, if you want a startup broker I can help you open your acct with my broker if you allow me.

humanandprice.blogspot.com

Hi, have you already found a suitable broker for you?

Jeanie Nieva-de la Rama

Good morning!I came across your site while reading up on forex trading. I am currently taking up an investment management class as part of my MBA in Ateneo. One of tje topics we are discussing is on Forex trading and we have been asked by our professor to invite experts in this area to speak in our class. It’s a small class of 11 professionals mostly with no background on forex trading. Our class usually meets every Saturday afternoon in the Rockwell campus. Thank you and I hope to hear from you.

Kristina

Hi,

May i ask, do you do forex as a living? If yes, so you declare all your profits for income tax? Coz Im planning to do it this year for visa purposes, earning bigger in forex than my other self-employed job and I think I might be questioned about where am I getting my funds if the only basis is my current job.

Thanks!!

Dan

I’m a newbie, studying to be a forex trader.
Can you help me how should I start to register on BIR as a forex trader so I could pay the taxes regularly when I start?

Forex and CFD’s are leveraged products that carry a high degree of risk to your capital, and it is possible to lose more than your initial investment. Leveraged trading may not be suitable for all investors, so please ensure you fully understand the risks involved and seek independent advice if necessary.